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Insuring Employment: SME Perspectives on the Employment Insurance System

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This report examines small business’ views of Canada’s Employment Insurance (EI) system. 

SMEs have a unique relationship with the EI system. In particular, they collectively provide employment for more than 10 million Canadians, representing 90 per cent of private sector employment in the country. 

Based on a survey of members, the survey shows that, while business owners are supportive of the overall core functions and role of EI, they seek improvements that will better serve employers and employees and bring some fairness to the system. 

The report makes several recommendations for policy makers. These include:

  • Introduce a EI rebate for youth hiring:
  • Renew the Small Business Job Credit
  • Implement  a 50/50 split in EI premiums so that both employers and employees contribute equally.